Failed fintech startup Bench raised more than $65 million in debt, documents show

Bench, beginning of accounting burst on holidaysThe large debts were revealed in documents seen by TechCrunch show that the Canadian filed for bankruptcy on January 7.

Applications – one for the Bench and other For 10 sheetsBench’s original name – Show that Bench has $2.8 million in cash at the end of its life, but $65.4 million in liabilities. (TechCrunch translated the bankruptcy filings from $1 to $1.44 per Canadian dollar.) Founded in 2012, Bench has raised $113 million from investors such as Shopify and Bain Capital Ventures.

Most of Bench’s debt – $50 million – is owed to the National Bank of Canada, one of Canada’s largest commercial banks. More than 85% of that debt is unsecured, meaning the bank has little collateral to claim against the loan now that Bench has defaulted. This debt may have contributed to the sudden closure of Bench: tech edition The newcomer reported NBC refused to grant Bench relief because it was being shopped for sale. NBC did not immediately respond to a request for comment.

The bankruptcy filings also reveal Bench’s financial obligations to VC investors, split between convertible notes (designed to convert to equity) and direct shareholder loans. Bench owes $1.3 million to Bain Capital Ventures, whose partner Sarah Hinkfuss was appointed to Bench’s board in 2023. says the press release. Bench owes another $1.2 million to Canadian VC Inovia Capital, whose CEO is Adam Schlesinger. was appointed As Bench’s last CEO, documents show. Contour Venture Partners, a New York-based VC led to Bench’s $60 million Series C round has about $750,000 in debt. Another investor, California-based Altos Ventures, owes $777,000. All of these VC-related debts are unsecured, the filings state.

Bench’s other debts include $1.8 million in severance payments to former employees, the documents said. TechCrunch reported about it earlier The bench was suddenly dismissed on December 27 without any notice or dismissal. (Bench’s new owner says Employer.com rehired a large number of workers(but told TechCrunch that they’re temporarily on 30-day contracts as Bench resolves its issues.)

Bench also owes former executives tens of thousands of dollars in severance pay: CEO Jean-Philippe Durrios, CRO Todd Daum and CFO Mor Lakritz, the filings show. Licorice LinkedIn Bench’s annual recurring revenue is estimated to be approximately $50 million.

Finally, bankruptcy filings show that Bench owes Canadian real estate agency Morguard $4 million, likely for unpaid rent for its office. At its peak, Bench employed over 600 people. Other than money owed on employees, office space and about $1.5 million (according to our back-of-the-envelope math) due to a scattering of prospective creditors like SaaS business software providers, the documents don’t show how the rest of the money is. spent.

As Bench works through bankruptcy, it is in process is obtained By Employer.com, a San Francisco-based HR technology company. Although that’s what their customers told TechCrunch, too Employer.com requires them to hand over their information To the employer or the risk of losing him.

Gary Levin, head of corporate development at Employer.com, told TechCrunch that a Canadian court is overseeing Bench’s bankruptcy proceedings and will oversee the distribution of proceeds to creditors. He emphasized that Employer.com has a strong balance sheet that allows it to invest in Bench significantly moving forward.